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Elections Canada Quarterly Financial Report 2017–2018
For the quarter ended December 31, 2017

Statement outlining results, risks and significant changes
in operations, personnel and programs

Introduction

This quarterly financial report has been prepared by management, as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. This quarterly report should be read in conjunction with the Main Estimates. This quarterly report has not been subject to an external audit or review.

The Office of the Chief Electoral Officer, commonly known as Elections Canada, is an independent, non-partisan agency that reports directly to Parliament. Its mandate is to:

A summary description of the agency's programs can be found at www.elections.ca/content.aspx?section=res&dir=rep/rpp/dp2017&document=p2&lang=e.

Basis of presentation

This quarterly financial report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities (see Table A.1 below) includes the agency's spending authorities granted by Parliament and those used by the agency that are consistent with the Main Estimates for the 2017-2018 fiscal year. This quarterly report has been prepared using a special-purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before monies can be spent by the government. Approvals are given in the form of annually approved limits through appropriation acts, or through legislation in the form of statutory spending authority for specific purposes. With respect to Elections Canada, the Canada Elections Act, the Electoral Boundaries Readjustment Act and the Referendum Act provide for all expenditures, with the exception of salaries of indeterminate employees, which are funded through an annual appropriation. The budgetary statutory authorities amounts presented in the tables below reflect only year-to-date expenditures since statutory authorities are granted as expenditures are incurred.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

Elections Canada uses the full accrual method of accounting to prepare and present its annual financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of fiscal quarter and fiscal year-to-date (YTD) results

During the first three quarters of 2017-2018, Elections Canada conducted 11 by-elections and continued its process for asset renewal and electoral services modernization.

First three quarters year-over-year variance

In the first three quarters of 2017-2018, budgetary expenditures totalled $86.8 million compared to $68.4 million in the same period of 2016-2017. The net increase of $18.4 million is explained by:

Third quarter year-over-year variance

In the third quarter of 2017-2018, budgetary expenditures totalled $31.0 million compared to $22.0 million in the same period of 2016-2017. The net increase of $9.0 million is explained by:

Figure 1 First, Second and Third Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)

Figure 1 – First, Second and Third Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)

Textual description of Figure 1 – First, Second and Third Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)

*Annual authorities for statutory funds reflect expenditures only for the first three quarters since statutory authorities are granted as expenditures are incurred. Please refer to Tables A.1 and A.2 for details.

Risks and uncertainties

Elections Canada's expenditures are influenced by the frequency, length and number of electoral events (general elections and by-elections) and by infrequent exercises such as referendums and the electoral district boundaries readjustment process. Any of these events can significantly change expenditures from one fiscal year to the next.

Public Services and Procurement Canada (PSPC) has implemented a new pay system as part of the pay transformation initiative. The implementation of Phoenix was a major undertaking and is facing challenges. PSPC continues to lead a significant effort to address the issues, and to see progress as it works closely with all departments and agencies. Despite these efforts, there are unrecorded transactions related to the pay system which are not reflected in the expenditure to date for the period covered.

Significant changes in relation to operations, personnel and programs

No significant changes in relation to operations, personnel or programs occurred during the third quarter of 2017-2018.

Approval by senior officials

Stéphane Perrault
Acting Chief Electoral Officer

Gatineau, Canada
March 1, 2018

Hughes St-Pierre, CPA, CMA
Chief Financial Officer


Table A.1
Elections Canada
Quarterly financial report
For the quarter ended December 31, 2017

Statement of Authorities (unaudited)

Fiscal year 2016–2017 (in thousands of dollars)
  Total available for use for the year ending March 31, 2017Footnote 1 Used during the quarter ended December 31, 2016 Year to date used at quarter-end
Vote 1 – Program expendituresFootnote 2 30,714 6,886 20,419
Statutory authorities      
Electoral expendituresFootnote 3 42,491 13,322 42,491
Contributions to employee benefit plans 5,277 1,759 5,277
Salary of the Chief Electoral Officer 233 65 233
Total Statutory authorities 48,001 15,146 48,001
Total authorities 78,715 22,032 68,420

Statement of Authorities (unaudited) (continued)

Fiscal year 2017–2018 (in thousands of dollars)
  Total available for use for the year ending March 31, 2018Footnote 1 Used during the quarter ended December 31, 2017 Year to date used at quarter-end
Vote 1 – Program expendituresFootnote 2 32,302 7,536 23,663
Statutory authorities      
Electoral expendituresFootnote 3 58,103 21,809 58,103
Contributions to employee benefit plans 5,089 1,696 5,089
Salary of the Chief Electoral Officer - - -
Total Statutory authorities 63,192 23,505 63,192
Total authorities 95,494 31,041 86,855

More information is available in Table A.2

Footnote 1 Budgetary statutory authorities amounts in the "Total available for use for the year ending March 31, 201x" columns reflect first three quarters expenditures only since statutory authorities are granted as expenditures are incurred.

Footnote 2 Program expenditures is an annual appropriation that funds the salaries of Elections Canada's indeterminate employees.

Footnote 3 Under the Statutory authority, Electoral expenditures funds the operating expenditures of the agency and those incurred in preparing and conducting elections, reimbursing election expenses to eligible candidates and parties, and monitoring compliance to the Canada Elections Act.



Table A.2
Elections Canada
Quarterly financial report
For the quarter ended December 31, 2017

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 20162017 (in thousands of dollars)
Planned expenditures for the year ending March 31, 2017Footnote 1 Expended during the quarter ended December 31, 2016 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 2 49,573 12,852 39,278
Transportation and communications 3,319 1,293 3,319
Information 729 343 729
Professional and special services 15,009 5,169 15,009
Rentals 6,404 1,809 6,404
Repair and maintenance 22 20 22
Utilities, materials and supplies 263 144 263
Acquisition of land, buildings and works - - -
Acquisition of machinery and equipment 471 147 471
Transfer payments 2,702 76 2,702
Public debt charges - - -
Other subsidies and payments 223 179 223
Total gross budgetary expenditures 78,715 22,032 68,420
Less Revenues netted against expenditures:
Revenues - - -
Total Revenues netted against expenditures: - - -
Total net budgetary expenditures 78,715 22,032 68,420


Departmental budgetary expenditures by Standard Object (unaudited) (continued)

Fiscal year 20172018 (in thousands of dollars)
Planned expenditures for the year ending March 31, 2018Footnote 1 Expended during the quarter ended December 31, 2017 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 2 58,036 17,345 49,397
Transportation and communications 4,033 1,927 4,033
Information 1,351 334 1,351
Professional and special services 19,071 7,644 19,071
Rentals 9,224 3,076 9,224
Repair and maintenance 238 173 238
Utilities, materials and supplies 810 174 810
Acquisition of land, buildings and works 4 - 4
Acquisition of machinery and equipment 1,032 438 1,032
Transfer payments 1,674 (54) 1,674
Public debt charges - - -
Other subsidies and payments 21 (16) 21
Total gross budgetary expenditures 95,494 31,041 86,855
Less Revenues netted against expenditures:
Revenues - - -
Total Revenues netted against expenditures: - - -
Total net budgetary expenditures 95,494 31,041 86,855

Footnote 1 Statutory expenditures in the "Planned expenditures for the year ending March 31, 201x" columns reflect first three quarters expenditures only since statutory authorities are granted as expenditures are incurred.

Footnote 2 Personnel expenditures include both Vote 1 Program expenditures and Budgetary statutory authorities; all other categories of expenditures are solely Budgetary statutory.